If we are purchasing a material from our creditors & we are selling it. but before sale we are changing the name of product and sale it by a new name. The product is excisable.
Then it is our trading sale or mfg sale and it is taxable under excise on not?
25 February 2008
EXCISE DUTY REQUIRES BASICALLY TWO TEST i.e. CHARACTER OR USE TEST .IN YOUR CASE SINCE THE USE AND CHARACTER DOES NOT CHANGE THEREFORE THE GOODS ARE NOT EXCISABLE AND NOT TAXABLE .IT IS TRADING SALE
26 February 2008
No, Only if product change its original nature. Or purchased material was known as diffrent name and have a diffrent nature and sold goods have diffrent only than it will be excisable. your goods doesnt seems me excisable. It is just trading of goods.
CAclubindia
